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Heritage Bank Discount Variable Home Loan

The Heritage Bank Discount Variable Home Loan offers variable rates from 5.74% p.a. (5.76% p.a. comparison rate*). Low deposit home loans.


Updated 10 May 2025


Fact checked and verified. Updated 10 May 2025
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Interest Rates
Enter scenario to see relevant rates
I want to borrow
with a deposit of
for my
Principal & Interest(% p.a.)
Rate
Type
Interest
Rate
Comparison
Rate*

Variable

5.74%

5.76%

Variable Index

7.94%

7.96%

Expert Review

If you're looking for a fee free home loan with basic features, then the Heritage Bank Discount Variable Home Loan is worth considering. As one of Heritage Bank's more basic home loan offerings, it features variable interest rates across the Owner Occupier and Investor categories, and the ability to split your loan with Heritage Bank's fixed rates. Heritage Bank also offers a home loan package with more comprehensive features, so it is prudent to consider what's most important to you before applying. Further details about the Heritage Bank Discount Variable Home Loan benefits are outlined below.

Basic non-package loan for owner occupiers:
The key features under this relatively basic offering for owner occupier loans are focused on pricing. Specifically, pricing advertised includes a $0 monthly fee, and a low variable rate starting from 5.74% p.a. (5.76% p.a. comparison rate) on Principal and Interest repayments. Please keep in mind that despite this being a relatively basic no-frills product offering by Heritage Bank, these rates should be able to be negotiated down, particularly for people borrowing a sizeable amount, or for those who hold a sizeable deposit or equity in a property already. This loan does require a minimum of either 5% deposit or 5% existing equity, and often anything above these amounts will help you negotiate a lower interest rate. There is the option to split the loan into Variable and Fixed rate components, plus being able to make extra repayments and in the future, redraw funds if desired. In terms of repayments Principal and Interest repayments are available.
Basic non-package loan for investors:
The key features under this relatively basic investor offering are focused on pricing. Specifically, the pricing advertised includes a $0 monthly fee, and a relatively high variable rate starting from 5.89% p.a. (5.91% p.a. comparison rate) on Principal and Interest repayments. Negotiation of these rates down should be possible, depending on your circumstances. Also, while you should speak with your accountant, many investors opt for an interest only loan, of which the rates are also outlined on this page. While these are relatively lower rates under Heritage Bank's more basic no-frills offering, these rates may still be able to be further negotiated down, particularly for investors who are borrowing a large amount, or if they who hold a sizeable deposit or equity in the property already. For investors, this loan does usually require a minimum of 5% deposit or 5% existing equity in the property, and often anything above these amounts will help you negotiate a lower interest rate. There is the option to split the loan into Variable and Fixed rate components, plus being able to make extra repayments and in the future, redraw funds if desired. In terms of repayments Interest Only repayments or Principal and Interest repayments are offered.
Summary
Considering the basic features available with this product, this home loan will appeal to a range of people, either as a home owner or as an investor. It will also appeal to someone where the lesser known Heritage Bank brand and service isn’t a concern, or for those who are happy to bank with a lender that offers features most important to them, over who the lender is.

Product Details
Enjoy a low rate home loan with no monthly administration fee, the ability to make additional repayments and free online redraw."
- Heritage Bank
Fees

•

$600 establishment fee

•

$0 annual fee

Other fees may apply.

Loan Amount

•

From $150,000

Feature

•

No ongoing fees

•

Split your loan into fixed and variable rate portions

•

Make extra repayments

•

Redraw extra repayments that you have made

TMD

Before applying for this product, you should read the Target Market Determination (TMD) available here on the Heritage Bank website.

More information
* Comparison rate is based on a secured loan of $150,000 over a 25 year term. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
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